Is Your House an Asset or a Liability?

Which other lie have you been made to believe? Your house is an asset not a liability

For many years, the adage that “your house is a liability, not an asset” has permeated financial conversations. This perspective often stems from the belief that a home incurs continuous expenses—mortgages, maintenance, and among others—without generating immediate income. However, this view overlooks a significant opportunity: the potential of equity release.

Equity release is a mortgage product that enables homeowners to unlock a portion of their home’s value, typically up to 70%. For instance, if your home is valued at $100,000, you could access approximately $70,000 through equity release. This capital can then be strategically reinvested into high-margin business ventures, stocks, or real estate, creating pathways for wealth generation.

In other markets such as the UK, according to the Office for National Statistics, the average UK house price was around £267,000 as of 2021, reflecting a steady increase over the years. This appreciation demonstrates that homes can serve as valuable assets. By utilizing equity release mortgage product, homeowners can capitalize on this growth, accessing funds that would otherwise remain locked within their property.

In conclusion, it’s time to challenge the outdated notion that your house is merely a liability. With equity release, homeowners can unlock the potential of their properties and transform them into powerful financial assets. Embracing this perspective not only empowers individuals but also paves the way for entrepreneurial success and financial independence. Let’s rethink how we perceive homeownership and recognize the opportunities it can provide.

If you need support to get started, don’t hesitate to reach out to me. Financial freedom is a choice that requires consistent nurturing of beliefs and perspectives.

John B. Kaweesi is the Head Consumer Banking and Mortgages at Housing Finance Bank.